Before implementing any strategies, you need to seek proper financial, legal and accounting counsel. Before committing to an MBA based on the reputation or location of a university, consider the units you will study and the learning outcomes. The following courses from Australian universities will give you relevant knowledge and skills to work towards a senior role in the industry. Not to mention that MBA graduate salaries do typically trend higher across senior management positions.

CEO vs Managing Director Differences

Not every company will have a managing director, but they will have a CEO, so it may be a case of changing roles or duties. CEO and director are two different roles, however in some cases the same person will hold both positions. It’s common for executives in smaller companies and startups to hold many titles and roles, in which cases it’s typical for a CEO to also be a director.

Some organizations may also prefer candidates with a master’s in Business Administration (MBA). CEO is an executive position in a company and the owner of the company is different. Although some owners are often CEOs of their company in the initial stages of the company. Executive education programs by universities such as Chicago Booth are beneficial for CEOs. So, a CEO’s role might or might not be higher than that of a Managing Director’s.

The CEO is the company’s chief leader and reports to the board of directors, which is chaired by the chairman. There are instances where the titles of CEO and Managing Director belong with the same person. This usually happens when the CEO is also the founder of the company.

The MBA by RMIT focuses on teaching students about innovation, design thinking and transformative business strategies. Victoria University positions its MBA students to develop financial, strategic and analytical skills required of senior business leaders. Non-profit organizations commonly have an executive director who reports to the board of directors. In for-profit companies, the executive director’s role is often merged with that of the CEO, where the CEO oversees all operational and strategic aspects. If you’re great at managing teams and the day-to-day operations of a company, a managing director role may be a good next step for you, and more suitable than being a CEO.

Responsibilities

Even if they give up their hands-on work in the business, most founders hold more stock in their company than any other individual. As such, when company stock goes up, founders usually stand to make the most money of anyone involved. For example, Kloo Coffee co-founders Claudia Snoh and Mariella Cho built business acumen through a prolonged soft launch where they gathered immense amounts of data about customer preferences. When they were finally ready to scale up, they possessed more institutional knowledge than any outsider MBA could have provided them. They were the natural choices to oversee their company’s rapid growth.

Some organizations have one or the other, but depending on your corporate structure, you might need both a CEO and a Managing Director. Below, we’ll explore the differences in responsibilities between these two roles. The CEO’s role is more prominent and more common than the Managing Director’s role.

Managing Director vs CEO: Strategic involvement and company size

While an executive director typically reports to the CEO, the power to hire or fire them may lie difference between ceo and director with the board of directors. In non-profit organizations, the board has the authority to make such decisions. However, in for-profit companies, the CEO, with board approval, holds the power to dismiss an executive director. The Chief Executive Officer (CEO) in a company is responsible for the financial operations and strategic direction that the business takes. They tend not to be deeply involved with day-to-day operations but provide a liaison between the company and the board of directors.

But they do not involve themselves in the day-to-day workings of every department. They are more concerned with the overall running, strategies, and goals of the company. When exploring which leadership role is right for you, consider what excites you most about being in that job. Is it being able to help with the overall vision or is it executing the plans and ensuring their success? You may find you have the vision and leadership abilities to drive success from a high-level position that’s less hands-on.

UCLA Anderson School of Management

Think of a CEO like the principal of a school or the head coach of a football team. They may not work hands-on with each separate individual of the company, but they’re the driving force behind everything that happens within their organization. After founding a company, some entrepreneurs remain on as CEO, overseeing operations and scaling it up to serve larger markets. But other founders decide they can let go, recognizing the skills required to launch a startup may not be the same as what’s needed to manage a mature enterprise. They may step aside, handing the reins to a seasoned executive better equipped to navigate the complexities of expansion and long-term sustainability.

They’re often deeply involved in the initial product development, business model creation, and early fundraising. Once the business is up and running, a founder may step back from day-to-day operations, remain on the board of directors, or stay in an advisory position, where they may provide input on an ongoing basis. The Chief Executive Officer is in charge of, but not involved in the company’s daily operations.

For example, Sana Javeri Kadri had a vision to build a different kind of spice business. She founded Diaspora Co. to execute that vision and then stayed on as CEO because her business reflected herself and her values. Start your free trial with Shopify today—then use these resources to guide you through every step of the process.

• They are also involved in developing company policy and implementing the company’s strategic goals.
• Historically, women have been underrepresented in both CEO and executive director roles, with men dominating these positions.
• It is taught by an award-winning faculty at the Chicago Booth School of Business and accomplished senior business leaders.
• This position is commonly found in non-profit organizations, where the executive director reports to a board of directors.
• Therefore, it is common practice to state that the Chief Executive Officer, or CEO, serves directly under the Board of Directors.

In most cases, the CEO reports to the company’s Board of Directors, whereas a Managing Director is positioned below the CEO. Northwest offers long-term and comprehensive executive education programs in collaboration with world’s best universities like MIT, Harvard, UCLA Anderson, Chicago Booth, NUS. Dive into the highest paying jobs in artificial intelligence roles, explore skills, industries, and career growth in this lucrative field.

• In many startup scenarios, the founder assumes the role of CEO, particularly during the company’s early growth stages.
• Here’s a rundown of key areas where they overlap and how they differ.
• But if you’re a strong manager who can connect with and motivate teams, and identify efficiencies on a more granular level, an operational management role may be your calling.
• The CEO is the company’s chief leader and reports to the board of directors, which is chaired by the chairman.

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The Colorado Revised Nonprofit Corporations Act (“CRNCA”) defines a director as “a member of the board of directors”. Therefore, any individual who is elected or appointed to serve on the board, is deemed a director. Salary can differ significantly between Chief Executive Officers and Managing Directors. If you are looking to find out salary differences between the two roles specific to your organisation’s size and local area, you can download our Managing Director Salary Guide and our CEO Salary Guide. Anstie says that the type of people who succeed in these roles need to have an open mindset to learn all the different skills required. Ultimately, the CEO is one of the biggest decision-makers within a company.